Infrastructure Stocks

This topic has been all the rage lately, so let’s get right to it…

Infrastructure Stocks

More specifically, I’m talking about green infrastructure stocks. These days, however, it’s getting harder and harder to tell the difference.

Ever since Obama got elected, the next stimulus has been the talk of the country and The Street. All eyes have been focused on which industries will be getting the money, and how soon they’ll be getting it.

First word came shortly after the election, as Obama sharpened his rhetoric on a green economy, and what that meant for the failing current economy by way of renewed investment and job creation.

As the inauguration neared, and Congress went back to work, it became clear which industries would be getting an Obama bump.

While there are billions slated for tax breaks and healthcare programs, here’s what’s on the docket for government cleantech and infrastructure spending via the $850 billion, and growing, economic stimulus:

* $20 billion in tax credits for wind, geothermal, hydro, and bioenergy generation projects
* $32 billion for electricity infrastructure and transmission upgrades
* $16 billion for energy efficiency
* $2.4 billion for carbon capture and
* $6 billion for home weatherization

Most of that money will make its way to public companies executing projects in the scope of the bill. As that happens, you can bet those companies will be great investment vehicles.

Green Infrastructure Stocks

You see, the plan Mr. Obama is trying to implement is actually quite smart.

If you’ve been paying attention, you know that our nation’s infrastructure is in dire need of repair and improvement. Our aging power systems are no longer enough to handle growing demand. And it’s certainly not advanced enough to handle growing amounts of remotely-produced solar and wind power.

Water infrastructure isn’t much better. Most of our water mains are over 50 years old, and we lose up to 30% of our supply to leaks and old age. What’s more, there are hundreds of water main breaks causing millions of dollars of damage each day.

The plan is to get thousands of people back to work by funding infrastructure projects. The goals are job creation, renewed spending, and the long-term benefits associated with infrastructure improvement.

By the new president’s own admission, the projects will have a noticeable green tinge to them. Finding and investing in related companies will provide an easy windfall over the next few years.

Fairly soon, I’ll be offering a paid stock advisory, in which I’ll recommend stocks like this for purchase. Until then, take a look at the big boys of infrastructure and construction. Caterpillar (NYSE: CAT), The Shaw Group (NYSE: SGR), Jacobs Engineering (NYSE: JEC), Chicago Bridge and Iron (NYSE: CBI), Fluor (NYSE: FLR), Foster Wheeler (NASDAQ: FWLT). They’re all good bets.

Just look at a chart of those stocks:

Three of them are down 50% or more over the past year. The other two aren’t far behind.

But they’ve been rising since the election. And they’re going higher; to mid-2008 levels and beyond. Riding a company that took a 50% hit back up to its original price implies a 100% gain. Many of them are possible with these stocks.

Be sure not to miss this infrastructure bull run.

To green energy and green profits,

Chris
Clean Energy Sector